Simplii Financial No Fee Chequing Account review
Money.ca / Money.ca
Quick overview
The Simplii Financial No Fee Chequing Account is a great choice for those seeking an effortless and cost-effective solution for daily banking. Its main appeal lies in the absence of monthly fees, yet still offering unlimited transactions. It’s a hassle-free option for various users, including students, seniors and newcomers to Canada. There's also a generous $400† welcome bonus for new Simplii Financial customers.
Key benefits of this account include unlimited Interac e-transfers and access to a vast network of over 3,400 CIBC ATMs across Canada. Overdraft protection is available up to $5,000, adding an extra layer of financial security for a cost of $4.79 per month, plus 19% of the amount accessed, if you end up needing to carry a negative balance at some point during that month.
However, there are some limitations to consider. Simplii is an online bank, lacking physical branch access, which might be a drawback for those preferring in-person banking experiences. This, along with the account's basic interest-earning potential, should be weighed against the account's no-fee structure and convenience to determine its suitability for individual banking needs.
Open an accountWho’s this account for?
The Simplii No Fee Chequing Account is for anyone seeking an easy-to-use, cost-effective option for everyday banking. This account is particularly suitable for students, seniors, Canadian newcomers or anyone aiming to eliminate account fees. With unlimited transactions and no monthly fees, it simplifies everyday financial activities, allowing you to make purchases, worry-free.
Additionally, they have targeted options such as the Simplii financial student account and another for international students. Both accounts seamlessly integrate with GIC accounts for a more streamlined banking experience.
Whether you're looking for a primary chequing account or supplementary bank account, Simplii's no fee structure makes it a versatile and attractive choice.
Simplii No Fee Chequing Account pros and cons
Pros
-
Generous welcome bonus of up to $400†
-
No monthly account fees
-
Unlimited transactions
-
Free Interac e-transfers
-
Access to CIBC’s vast ATM network
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Overdraft protection available
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Earn a referral bonus
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Earn interest in your chequing account from 0.01% to 0.1%
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No fee global money transfer
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Free cheques
Cons
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Simplii is online only with no branch access
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Quebec residents are not eligible to open a Simplii bank account
How to open a Simplii account
Simplii financial account opening can be done fully online in a few quick steps:
- 1.
Go to the Simplii website and click "Join Simplii"
- 2.
Select the accounts you want and click "Apply Now"
- 3.
Select if you are a resident of Canada, a newcomer to Canada or an international student
- 4.
Verify your identity and personal information such as SIN number, contact info and address
- 5.
Accept the terms and conditions
- 6.
Set up a username, password and security questions.
- 7.
Review and submit the application
You can complete the entire process on your phone, tablet or computer in around 10 minutes. You'll typically get approved within a few days. After approval, you'll receive an immediate welcome email and a package with your client information and you should expect to receive your debit card in the mail within one to two weeks. Then you can register for online banking using the card to access your account.
A closer look at Simplii Financial banking online
Simplii No Fee Chequing Account: Details
How do I set up direct deposit?
You can set up direct deposit by submitting a direct deposit form available in Simplii online banking to whomever will be depositing funds into the account, such as your employer or health benefits provider. Direct deposit will allow your funds to be automatically deposited into your Simplii account.
Do I get a debit card?
Yes, you get a Simplii debit card with the account. The debit card is a standard debit Mastercard that you can use to make purchases online, and in-store. As expected, it offers contactless tap and mobile wallet functionality. Your debit card can be used at any CIBC ATM in Canada without a fee. You can also withdraw money from any non-CIBC ATM displaying the Interac® or PLUS* signs.
How long does it take to open an account?
Opening the account fully online only takes about 10 minutes. You'll typically receive approval within a few days and get your debit card in the mail within one to two weeks.
How long do e-transfers take?
Sending Interac e-transfers to recipients with auto deposit set up is practically instant. Otherwise, funds are typically deposited within 30 minutes once the recipient logs into their bank and deposits the money.
What can I expect in the app?
The Simplii mobile app lets you pay bills, review balances, send e-transfers, deposit cheques and more. It has a biometric login, customizable budgets and spending insights.
Is there overdraft protection?
Yes, you can get Simplii Financial overdraft protection up to $5,000. This can help cover payments or withdrawals if you overspend your balance. However, you’ll need to pay a $4.97 monthly fee for overdraft protection each month you dip into a negative balance. There’s also a 19% interest rate that applies to overdraft balances. Without overdraft protection, you’ll need to pay a $45 NSF fee.
Simplii Financial banking limits and fees
| Feature | Limit/Fee |
|---|---|
| Overdraft limit | Up to $5,000 |
| Overdraft fee | $4.97 per month if used |
| Overdraft interest | 19% on overdraft balance |
| Outgoing and incoming Interac e-transfer | Free |
| Debit cards | 1 free replacement per year if lost or stolen |
| Cheque fee | Free to order void or standard cheques |
| ATM withdrawal fees | Free at CIBC ATMs. $1.5 per withdrawal at non-CIBC ATMs in Canada and $3 for international ATMs |
Can you use Simplii for investing?
While Simplii Financial focuses primarily on core banking products, they provide some basic options for conservative investors who want guaranteed returns without much risk. However, for broader investing in stocks and bonds, mutual funds and ETFs, you'll need to look at opening accounts with full-service brokerages or robo-advisors.
Simplii offers decent interest rates on registered savings accounts and GICs that can play a role in a balanced portfolio. However, the investment selection is limited compared to dedicated investment platforms.
Simplii RRSP
The Simplii RRSP Savings Account offers a 0.40% interest rate, higher than the savings account rate of 0.05% but lower than other online banks such as Tangerine or EQ Bank. While stable, Simplii’s rate is much lower than the average 7% returns from invested RRSPs like the TSX. This account is ideal for conservative savers seeking a low-risk, hands-off option.
Simplii GICs
Simplii offers guaranteed investment certificates (GICs) with terms ranging from one to five years and fixed interest rates. These rates are decent but not industry-leading. For example, EQ Bank currently offers 5.1% on a one-year GIC. The benefits of Simplii GICs are guaranteed returns, no risk to your principal and CDIC protection of up to $100,000.
As usual with GICs, your money is locked in for the term with fees for early redemptions. GICs work well for medium-term savings goals when you prioritize stability, and don’t expect to access the money soon.
| Term | Interest rate |
|---|---|
|
1 year
|
4.889%
|
| 2 years | 4.266% |
| 3 years | 4.170% |
| 4 years | 4.170% |
| 5 years | 4.170% |
Simplii TFSA
Simplii’s TFSA savings account earns the same 0.40% interest rate as the RRSP account. However, unlike an RRSP, your investment growth is tax-free instead of just tax-deferred. Overall, the Simplii TFSA savings account makes sense for investors who want an easy, no-risk way to use their TFSA contribution room each year.
Simplii mutual funds
You can buy mutual funds at Simplii through their parent bank CIBC. As such, you’ll be investing in CIBC’s products. This is done through Simplii Invest, which provides access to portfolios of mutual funds.
The investment process starts with a brief risk questionnaire to match you with a suitable portfolio. You can then invest in the mutual funds directly through your Simplii chequing account.
The management fee varies across mutual funds, but Simplii customers receive a 10 basis point discount. However, the fund selection is limited compared to full brokerages.
Simplii education plans
Simplii allows you to open self-directed RESP accounts to invest in your child’s education. The benefit of an RESP is tax-deferred growth and access to government grants ($500 per year per child with the CESG up till age 17). However, the account is self-managed, offering no professional advice.
Simplii loans
Personal loans
Personal loans provide a lump-sum deposit, compared to a line of credit that offers more withdrawal flexibility. As such, personal loans offer more predictable payments.
Simplii Financial offers personal loans with fixed and variable rates. Simplii doesn’t publish their personal loan rates but states they are competitive. The interest rate you receive depends on your credit profile and market conditions.
Simplii’s personal loans are open, meaning you can prepay them without penalty whenever desired.
Secured lines of credit
A secured line of credit offers the most flexibility and lowest interest rates. Simplii’s secured line of credit uses your home as collateral, with rates as low as CIBC’s prime.
If approved, you’ll receive a credit limit that you can withdraw from. The secured line links to your Simplii chequing account to easily access the borrowed funds. Similar to a credit card, you’ll only need to pay interest on portions you use. However, Simplii charges a one-time $150 setup fee for processing the line of credit. The lines of credit start at a $15,000 minimum.
Simplii No Fee Chequing Account key benefits
- Up to $400† welcome bonus
- Earn interest in your chequing account, which most banks don't offer
- No monthly account fees or minimum balances
- Unlimited daily transactions like bill payments, debit purchases, e-transfers and more
- Free Interac e-transfers
- Free international money transfers
- Free cheques
- Access to over 3,400 fee-free CIBC ATMs coast-to-coast
- Overdraft protection available up to $5,000 if required
- Strong digital banking options through online banking and the Simplii mobile app
What people say about this account
The Simplii no fee chequing account consistently earns overall positive feedback online. Users appreciate its lack of fees, digital banking capabilities, and included debit card.
Reddit threads like r/PersonalFinanceCanada recommend it as an affordable basic banking option with great mobile features. Users mention the convenience of using CIBC ATMs and generous sign-up bonuses. Complaints are rare, mainly around occasional technical issues or customer service.
On Trustpilot, their rating stands at a modest 1.8. This score primarily reflects customer grievances regarding customer service and concerns over ambiguous promotions related to interest rates and the marketing of financial products.
It's noteworthy, however, that many banks tend to receive lower ratings on Trustpilot. This trend suggests that dissatisfied customers are more inclined to voice their complaints on such platforms than satisfied customers who might be less motivated to leave positive feedback. In comparison, Simplii’s 1.8 rating actually fares better than some of its competitors, like TD, which has a rating of 1.4.
How Simplii Financial No Fee Chequing Account compares
KOHO vs. Simplii
Simplii’s account is more suitable for those looking for a comprehensive banking experience, whereas KOHO targets users who prefer rewards.
Both companies offer no fee accounts with unlimited transactions, free e-transfers and mobile apps. However, KOHO caters to cashback enthusiasts, earning up to 1% cash back on spending. Simplii’s debit card earns no cash back.
In contrast, Simplii offers better ATM access. This is due to their CIBC partnership, whereas KOHO is constrained to the Cirus network. Simplii also provides overdraft protection, but KOHO restricts it to “once you qualify.”
EQ Bank vs. Simplii
Simplii Financial and EQ Bank cater to digitally savvy customers but with distinct banking approaches. Simplii front-loads earnings with a $400† welcome bonus, while EQ offers interest rates up to 4%.
EQ Bank is unique in its approach to merging chequing and savings accounts. The hybrid account earns a strong interest rate, with access to cashback on debit card spending.
In terms of ATM networks, EQ Bank pulls ahead. This is because they rebate ATM fees, providing no fee access to networks across Canada. Otherwise, Simplii is constrained to CIBC’s network.
Tangerine vs. Simplii
Simplii and Tangerine are similar banks. They’re owned by CIBC and Scotiabank, offering access to their networks. The similarities extend to its chequing accounts.
Both accounts have welcome offers of up to $400. They also have robust ATM networks, as mentioned above. Otherwise, Simplii offers free cheques, a $50 cost at Tangerine.
| Feature | Simplii | KOHO | EQ Bank | Tangerine |
|---|---|---|---|---|
| Monthly fee | $0 | $0, $4, $9, $19 depending on plan | $0 | $0 |
| ATM access | CIBC | Limited to Cirus network | Rebated fees from any ATM in Canada | Scotiabank |
| Benefits | Free cheques | Cash back rewards, high savings | High interest, cash back rewards | Cash back rewards in welcome bonus |
| Direct deposit | Yes | Yes | Yes | Yes |
| Welcome offer | Up to $400† | $20 | N/A | Up to $400 |
Is the Simplii Financial No Fee Chequing Account worth It?
For those looking for affordable, straightforward daily banking, the Simplii No Fee Chequing Account is worth considering. The lack of any monthly fees or minimum balance requirements provides strong value. You get a full-service account with unlimited transactions, a debit card and mobile features. Overdraft protection is also available for an added cost.
While the interest rate is minimal, and it doesn't offer cash back or rewards like some competitors, the consistent no fee structure may outweigh those limitations for anyone wanting simple daily banking. For seamless digital banking capabilities and debit card acceptance across Canada and globally, Simplii covers the basics effectively.
FAQs
"Simplii FinancialTM" is a trademark and division of CIBC. Banking services are not available in Quebec.
Lucas, a Toronto native, holds an Honours BBA (Finance) degree obtained from Wilfrid Laurier University. His career has spanned venture capital and blockchain startups. Aside from writing at Moneywise, Lucas is a Hardbacon and Loans Canada contributor, and content specialist at Croton Content. Additionally, his passion for exploring the world has taken him to an impressive 28 countries across Europe, North America, Asia, and Central America.
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